Kenya has launched a Business Regulatory Toolkit to help local SMEs and foreign businesses access legal and regulatory information. The Toolkit will help entrepreneurs to simplify their knowledge of the changing regulatory requirements and advise on key regulators applicable to them.
The Toolkit was jointly developed by the Ministry of EAC and Regional Development’s Department of Business Reforms and Transformation, and the British High Commission’s UK Kenya Tech Hub. Other technical partners include UK Aid, Kenya National Chamber of Commerce and Industry (KNCC&I) and Kenya National Innovations Agency (KENIA).
This new development adds on Kenya’s effort to create a conducive legal and regulatory environment. Through the Ease of Doing Business Reforms Agenda for small businesses, it will respond to businesses needs to enter the formal economy, improve operations, and grow their businesses.
Launching the Business Regulatory Toolkit, Ministry of East Africa Community and Regional Development’s Cabinet Secretary Adan Mohamed said, “We have so far implemented over 47 legal reforms in the past 6 years, and this Toolkit is a transformational addition to further broaden the scope and reach of businesses to better understand the regulatory environment.”
According to the Kenya National Bureau of Statistics (KNBS), Kenya is currently registering over 200 businesses daily, compared to 30 businesses six years ago. This totals to over 600,000 newly registered firms since 2014, and 12 million small businesses in operation. This is according to the Doing Business Reforms Milestones Report developed by the Department of Business Reforms and Transformation on business climate reforms implemented in 2014.
According to the Deputy British High Commissioner to Kenya, Julius Court, regulation was a key barrier to businesses in a sector analysis that informed the development of the Toolkit. “Regulation is important for entrepreneurs that are looking to grow and scale up their businesses. This is an area that can prove to be confusing and overwhelming for entrepreneurs whose main focus is to run their businesses,” said Amb. Court.
In World Bank’s Doing Business Report 2020, Kenya was ranked 56th, 80 places from its 136th position in 2014. Within the six-year period, Kenya has been ranked the third-most improved country for three consecutive years (2015, 2016, 2017). Kenya was also the most improved nation in Africa, and the third-most reformed country in sub-Saharan Africa, after Rwanda and Botswana.